The strike at Boeing (BA) may soon end after the planemaker made a third attempt to appease workers with a sweetened labor contract. If cleared, Boeing would finally be able to restart work at key production facilities after the strike dragged on for over a month and halted most factory output. The news sent its shares gaining 2% premarket on Friday.

What's on the table: Boeing has pitched a 38% wage increase over four years, significantly higher than its prior proposal of a 25% increase that workers overwhelmingly rejected. The latest offer doesn’t bring back pensions, but Boeing would instead increase company 401(k) contributions. It would also keep paying yearly bonuses, which were eliminated in the prior offer, and pay $12,000 ratification bonuses. The union will vote on the deal on Monday.

What's at stake: The strike has cost Boeing an estimated $1B a month, pushing management this week to raise $24B in share sales to stave off a credit downgrade to junk status that would raise its borrowing costs. Boeing's new CEO Kelly Ortberg has also been streamlining operations and pushing ahead with 17,000 job cuts to preserve cash. Boeing last week reported a $6B loss in Q3, burned through $2B of cash, and expects to burn cash through the next three quarters.

DEI team dismantled: In other news, Boeing has reportedly dismantled its diversity, equity and inclusion department, joining the likes of Tractor Supply (TSCO), Lowe's (LOW) and Ford (F) in pulling DEI initiatives. Sara Liang Bowen, who led Boeing's DEI department, stepped down on Thursday. The move comes as large U.S. companies have been facing growing pressure on social media from conservative activists to drop or scale back DEI efforts. (37 comments)

What else is happening...

Nonfarm payrolls growth seen waning due to strike, hurricanes.

Crude oil extends gains on reports of Iran preparing Israel attack.

U.S. sees North Korea troops joining Russia's war against Ukraine.

Apple (AAPL) earnings: China weakness, conservative forecast.

Amazon (AMZN) results: Hope for holidays, underrated AI potential?

Intel (INTC) soars as guidance impresses, turnaround efforts on track.

World's 4th most populous country bans Google (GOOG) Pixel sales.

Super Micro (SMCI) shock: Partner Nvidia (NVDA) remains AI king.

Recap of notable auditor resignations from companies in the U.S.

Baby formula case: Abbott, Reckitt (OTCPK:RBGPF) found not liable.

Today's Markets

In Asia, Japan -2.6%. Hong Kong +0.9%. China -0.2%. India closed.
In Europe, at midday, London +0.8%. Paris +0.7%. Frankfurt +0.6%.
Futures at 7:00, Dow +0.3%. S&P +0.4%. Nasdaq +0.5%. Crude +2% to $70.65. Gold +0.4% to $2,759.80. Bitcoin -3.5% to $70,017.
Ten-year Treasury Yield unchanged at 4.29%.

Today's Economic Calendar

8:30 AM Non-farm payrolls
9:45 AM Fed’s Logan Speech
9:45 AM PMI Manufacturing Index
10:00 AM ISM Manufacturing Index
10:00 AM Construction Spending
1:00 PM Baker Hughes Rig Count

• $AMZN: JMP Securities Raises target price to $285 from 265
• $AMZN: Goldman Sachs Raises target price to $240 from 230
• $AMZN: Bernstein Raises target price to $235 from 225
• $AMZN: RBC Capital Raises target price to $225 from 215
• $AMZN: Piper Sandler Raises target price to $225 from 215
• $AMZN: Wedbush Raises target price to $250 from 225
• $AMZN: UBS Raises target price to $230 from 223
• $AMZN: Truist Securities Raises target price to $270 from 265
• $AMZN: TD Cowen Raises target price to $240 from 230
• $AMZN: Stifel Raises target price to $245 from 224
• $AMZN: Roth/MKM Raises target price to $220 from 215
• $AMZN: Cantor Fitzgerald Raises target price to $240 from 210
• $AMZN: BofA Securities Raises target price to $230 from 210
• $AMZN: BMO Capital Raises target price to $236 from 230
• $AMZN: Citi Raises target price to $252 from 245
• $AMZN: Baird Raises target price to $220 from 213
• $AMZN: JPMorgan Raises target price to $250 from 230
• $AMZN: Jefferies Raises target price to $235 from 225
• $AMZN: Evercore ISI Raises target price to $260 from 240
• $AMZN: Deutsche Bank Raises target price to $232 from 225
• $AMZN: Seaport Global Securities Raises target price to $225 from 200
• $AMZN: Telsey Raises target price to $235 from 215
• $AMZN: Susquehanna Raises target price to $230 from 220
• $AMZN: MoffettNathanson Raises target price to $235 from 229
• $AMZN: Rosenblatt Raises target price to $236 from 265

FUBO
FuboTV sees FY24 revenue $1.91B-$1.95B, consensus $1.62B
"Fubo's third quarter of 2024 was notable for ongoing subscriber and revenue growth alongside improvements in key profitability metrics - all important markers that give us continued confidence in our 2025 profitability goal," said Edgar Bronfman Jr., executive chairman, Fubo. "In addition, we are gratified by recent wins in our ongoing fight for a fair and competitive marketplace, including the granting of a preliminary injunction against the proposed sports streaming joint venture. The streaming industry remains under constant disruption which Fubo sees as an opportunity to build a distinctive sports entertainment streaming platform with consumer needs at its heart."

AMZN
Amazon.com price target raised to $236 from $221 at Rosenblatt
Rosenblatt analyst Barton Crockett raised the firm's price target on Amazon.com to $236 from $221 and keeps a Buy rating on the shares. Amazon's Q3 featured "surprisingly strong" margin improvement and steady Web Services, the analyst tells investors in a research note.

gm bobber

W
Wayfair reports Q3 non-GAAP EPS 22c, consensus 15c
Reports Q3 revenue $2.9B, consensus $2.88B. "Q3 marked another proofpoint of resilience for Wayfair with further market share capture in the face of sustained challenges in the category. Once again, we navigated a dynamic consumer environment while driving further discipline on costs to achieve a mid-single-digit Adjusted EBITDA margin for the second quarter in a row. As I've mentioned before, our north star is driving Adjusted EBITDA dollars in excess of equity-based compensation and capital expenditures, and we're pleased to be making noteworthy improvements across each of these fronts," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. "We remain laser-focused on delivering healthy profitability while setting ourselves up for success as the category rebounds. The core goal across each of our initiatives in 2024 is to foster customer loyalty and spur repeat business while driving economic value. We're not just aiming for short-term gains, but building long-lasting relationships with our customers that will be accretive on both the top and bottom lines."

UBER
Uber price target raised to $95 from $80 at JMP Securities
JMP Securities raised the firm's price target on Uber to $95 from $80 and keeps an Outperform rating on the shares. Uber reported mixed Q3 results, with EBITDA beating the high end of guidance by $10M, while gross bookings came in 1% below consensus, the analyst tells investors in a research note. The firm believes Uber can continue to compound bookings at healthy double-digit rates and would take advantage of the pullback in shares.

AAPL
Citi views Apple guidance 'as a relief,' maintains Buy rating
Citi analyst Atif Malik says Apple reported a beat in fiscal Q4 with iPhone sales up 6% year-over-year, above Citi's 2% expectations. The firm sees the Q4 guidance "as a relief" given the transition to iOS 18.2 with more Apple Intelligence software features to be launched in December. It expects the iPhone cycle to be more software driven versus historical seasonality. The firm maintains a Buy rating on the shares with a $255 price target.

TEAM
Atlassian upgraded to Overweight from Sector Weight at KeyBanc
KeyBanc upgraded Atlassian to Overweight from Sector Weight with a $260 price target. Following the "strong" fiscal Q1 results, the firm feels better that Atlassian's guidance is appropriately set to facilitate a more consistent "beat/raise cadence going forward." Stable paid seat expansion over the past two quarters, coupled with a risk-adjusted guidance framework that implies a deteriorating macro environment, and data points from KeyBanc's recent surveys that point to some optimism in IT budgets in 2025, creates a positive setup for the shares, the analyst tells investors in a research note. The firm sees several catalysts to Atlassian accelerating growth beyond fiscal 2025.

AAPL
Apple Q1 revenue outlook below sell-side consensus, says JPMorgan
JPMorgan says Apple's fiscal Q4 results and guidance suggested that momentum for its hardware products "remain healthy and resilient." However, it is tougher to forecast for the holiday quarter where a majority of the sales are concentrated over a single month leading to a wider range of outcomes embedded in the guidance than typical, the analyst tells investors in a research note. The firm says Apple's Q1 guidance range is below the sell-side consensus estimate of 7% year-over-year revenue growth, but based on its latest conversations only modestly shy of more recent investor expectations for growth in and around the mid-single digit range given the slower start to the iPhone 16 cycle. It maintains an Overweight rating on the shares with a $265 price target

AAPL, TSM, AVGO
iPhone 17 to use Wi-Fi chips made by TSMC's N7 process, Kuo says
Apple (AAPL) plans to use its own Wi-Fi chips made by TSMC's (TSM) N7 process and with Wi-Fi 7 in the iPhone 17 lineup, reducing its reliance on Broadcom (AVGO), analyst Ming-Chi Kuo said in a post on X, the platform formerly known as Twitter. "Apple expects to move nearly all products to in-house Wi-Fi chips within about three years. This move will reduce costs and enhance Apple's ecosystem integration advantages," Kuo said

RBLX
Roblox price target raised to $50 from $40 at Barclays
Barclays analyst Ross Sandler raised the firm's price target on Roblox to $50 from $40 and keeps an Equal Weight rating on the shares post the Q3 report. Almost all Roblox key performance indicates continue to accelerate, including all-time high bookings, daily active users and engagement hours, and the safety concerns are common across many social applications, are solvable, and management is addressing them, the analyst tells investors in a research note.

https://www.bloomberg.com/news/features/2024-10-30/new-amazon-alexa-ai-is-stuck-in-the-lab-till-it-can-outsmart-chatgpt

$ECON
The Chicago PMI
The Chicago PMI plunged to a 5-month low of 41.6 in October from 46.6, versus a 7-month high of 47.4 in June and a deep 4-year low of 35.4 in May. The Chicago index likely faced a big October hit from the Boeing strike, which began on September 13, alongside the broader hit to Boeing since January from various safety issues that have hampered production. The Chicago PMI drop joins a decline for the Empire State, but gains for the Dallas Fed, Richmond Fed and Philly Fed, to leave sentiment overall still fluctuating just slightly in contraction territory, after falling from lofty peaks in November of 2021 to a trough in January of 2024. The ISM-adjusted average of the major sentiment surveys will likely sustain the September uptick to a 24-month high of 50 last seen in September of 2023. Analysts saw a 4-year low of 46 in January and a 62 all-time high in November of 2021. Analysts expect a 50 average in Q4, after averages of 49 in both Q2 and Q3, and 48 in Q1. Analysts saw 2023 averages of 49 in Q3 and Q4, and 48 in Q1 and Q2.

AI
C3.ai awarded U.S. patent for AI agent generative AI technology
C3 AI announced the issuance of a new U.S. patent for its advanced AI agent generative AI technology. This patent reinforces C3 AI's commitment to innovation and its leadership in generative AI. The patent details a sophisticated system and method for managing multiple AI agents to orchestrate actions using multimodal foundation models. The C3 Generative AI architecture orchestrates AI agents, tools, and smaller machine-learning models to retrieve information across both structured and unstructured data, reason on information, take actions, produce natural language summaries, and identify actionable insights. Key Patented Technology: AI Orchestrator: An AI orchestrator coordinates multiple AI agents, invokes specialized machine-learning models or other tools, and handles diverse data types and tasks. Autonomy: Designed to be autonomous, meaning the AI agents can operate independently to perform tasks across various business functions like sales, service, marketing, and commerce. AI agents can be fully customized to fit the specific needs of any industry or business process, using tools that are already familiar to programmers and data scientists. Multimodal Model Integration: The system integrates advanced multimodal models to break down inputs into a series of instructions for different agents. Natural Language Summarization: The technology generates comprehensive summaries from varied data sources, significantly improving decision making. Traceability and Security: C3 Generative AI agents provide full traceability to sources, comprehensive enterprise access controls, high security, minimal hallucinations, and are LLM agnostic.

AI splurge looms large
Microsoft (MSFT) and Meta Platforms (META) sailed past analyst expectations with their quarterly earnings reports. But the Big Tech firms' guidance for more AI spending has investors worried over the results of these heavy investments in the short term. These concerns have dragged their shares nearly 4% before the bell on Thursday.

AI demand vs. capacity: Microsoft easily eclipsed estimates with its Q1 results as its Azure cloud segment crushed expectations. "AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process," said its CEO Satya Nadella. Shares initially rose after the results, but reversed course after Microsoft forecast slower Azure revenue growth and continued capacity constraints at data centers amid surging demand. It also plans to continue spending heavily on cloud and AI to scale related infrastructure.

All about the money: Meta shares fell despite its Q3 earnings beat, which was tempered by traders' concerns that heavy technology spending would continue to pressure profits. "We had a good quarter driven by AI progress across our apps and business," said CEO Mark Zuckerberg. But Meta forecast a "significant acceleration" in spending on AI-related infrastructure in 2025. Zuckerberg acknowledged that this may not be what investors want to hear in the near term, but insisted that the opportunities here "are really big."

SA commentary: "Microsoft is well positioned to capture market growth opportunity in cloud and AI, thanks to their substantial investments," said SA analyst Hunter Wolf Research, who continues to expect double-digit revenue and earning growth in the near future. Investing Group Leader Jonathan Weber believes Meta remains an attractive long-term investment, pointing to its rising revenue and cash flows, a fortress balance sheet, and a very reasonable valuation.


Super Micro Computer

Wednesday was a big day for Super Micro Computer (SMCI), which plunged over a third in response to its auditor resigning. It added to the worries of alleged financial reporting and governance issues that have cast shadows on the popular AI stock. Since an all-time high of $122.90 in mid-March, shares are down 73%, finishing yesterday's session at $33.07. Shares are also dropping again premarket, off another 5% to $31.44.

What are investors saying on the matter? Check out the 400+ comment thread from SA subscribers.

What are analysts saying on the matter? Read the latest article from SA Investing Group Leader Value Investor's Edge.

What's next for the company? Auditor resignations are rare, but can happen for a range of reasons. In the case of Super Micro (SMCI), Ernst & Young was the second auditor the company had in a span of 18 months. In order to get things back in order, Super Micro will likely need to take action in these areas or otherwise risk suffering the fate of public firms that have found themselves in similar situations.



What else is happening...

SA Election Forum: Recession fears at bay; gold and bitcoin outlook.

PCE report: Fed's preferred inflation gauge seen edging up.

Samsung flags 'meaningful' progress on AI chip supply deal.

Siemens (OTCPK:SIEGY) to buy Altair (ALTR) for $10.6B.

U.K. budget: Reeves boosts top capital gains tax rate to 24%.

Florida inadvertently banned banks from selling securities.

Exxon (XOM) slams California AG lawsuit over plastics recycling.

Hims & Hers (HIMS) slumps as Ozempic no longer in short supply.

Starbucks (SBUX) plans return to neighborhood coffeehouse vibe.

Grammys end 50-year stint with CBS, will move to Disney (DIS).

Today's Markets

In Asia, Japan -0.5%. Hong Kong -0.3%. China +0.4%. India -0.7%.
In Europe, at midday, London -0.8%. Paris -0.9%. Frankfurt -0.5%.
Futures at 7:00, Dow -0.5%. S&P -0.7%. Nasdaq -1%. Crude +0.2% to $68.71. Gold -0.3% to $2,791.60. Bitcoin +0.4% to $72,538.
Ten-year Treasury Yield -2 bps to 4.28%.

Today's Economic Calendar

07:30 AM Challenger Job-Cut Report
08:30 AM Initial Jobless Claims
08:30 AM Personal Income and Outlays
08:30 AM Employment Cost Index
09:45 AM Chicago PMI
10:30 AM EIA Natural Gas Inventory
11:00 AM Treasury Buyback Announcement
02:00 PM Treasury Buyback Results
03:00 PM Farm Prices
04:30 PM Fed Balance Sheet

AI splurge looms large
Microsoft (MSFT) and Meta Platforms (META) sailed past analyst expectations with their quarterly earnings reports. But the Big Tech firms' guidance for more AI spending has investors worried over the results of these heavy investments in the short term. These concerns have dragged their shares nearly 4% before the bell on Thursday.

AI demand vs. capacity: Microsoft easily eclipsed estimates with its Q1 results as its Azure cloud segment crushed expectations. "AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process," said its CEO Satya Nadella. Shares initially rose after the results, but reversed course after Microsoft forecast slower Azure revenue growth and continued capacity constraints at data centers amid surging demand. It also plans to continue spending heavily on cloud and AI to scale related infrastructure.

All about the money: Meta shares fell despite its Q3 earnings beat, which was tempered by traders' concerns that heavy technology spending would continue to pressure profits. "We had a good quarter driven by AI progress across our apps and business," said CEO Mark Zuckerberg. But Meta forecast a "significant acceleration" in spending on AI-related infrastructure in 2025. Zuckerberg acknowledged that this may not be what investors want to hear in the near term, but insisted that the opportunities here "are really big."

SA commentary: "Microsoft is well positioned to capture market growth opportunity in cloud and AI, thanks to their substantial investments," said SA analyst Hunter Wolf Research, who continues to expect double-digit revenue and earning growth in the near future. Investing Group Leader Jonathan Weber believes Meta remains an attractive long-term investment, pointing to its rising revenue and cash flows, a fortress balance sheet, and a very reasonable valuation.


Super Micro Computer

Wednesday was a big day for Super Micro Computer (SMCI), which plunged over a third in response to its auditor resigning. It added to the worries of alleged financial reporting and governance issues that have cast shadows on the popular AI stock. Since an all-time high of $122.90 in mid-March, shares are down 73%, finishing yesterday's session at $33.07. Shares are also dropping again premarket, off another 5% to $31.44.

What are investors saying on the matter? Check out the 400+ comment thread from SA subscribers.

What are analysts saying on the matter? Read the latest article from SA Investing Group Leader Value Investor's Edge.

What's next for the company? Auditor resignations are rare, but can happen for a range of reasons. In the case of Super Micro (SMCI), Ernst & Young was the second auditor the company had in a span of 18 months. In order to get things back in order, Super Micro will likely need to take action in these areas or otherwise risk suffering the fate of public firms that have found themselves in similar situations.



What else is happening...

SA Election Forum: Recession fears at bay; gold and bitcoin outlook.

PCE report: Fed's preferred inflation gauge seen edging up.

Samsung flags 'meaningful' progress on AI chip supply deal.

Siemens (OTCPK:SIEGY) to buy Altair (ALTR) for $10.6B.

U.K. budget: Reeves boosts top capital gains tax rate to 24%.

Florida inadvertently banned banks from selling securities.

Exxon (XOM) slams California AG lawsuit over plastics recycling.

Hims & Hers (HIMS) slumps as Ozempic no longer in short supply.

Starbucks (SBUX) plans return to neighborhood coffeehouse vibe.

Grammys end 50-year stint with CBS, will move to Disney (DIS).

Today's Markets

In Asia, Japan -0.5%. Hong Kong -0.3%. China +0.4%. India -0.7%.
In Europe, at midday, London -0.8%. Paris -0.9%. Frankfurt -0.5%.
Futures at 7:00, Dow -0.5%. S&P -0.7%. Nasdaq -1%. Crude +0.2% to $68.71. Gold -0.3% to $2,791.60. Bitcoin +0.4% to $72,538.
Ten-year Treasury Yield -2 bps to 4.28%.

Today's Economic Calendar

07:30 AM Challenger Job-Cut Report
08:30 AM Initial Jobless Claims
08:30 AM Personal Income and Outlays
08:30 AM Employment Cost Index
09:45 AM Chicago PMI
10:30 AM EIA Natural Gas Inventory
11:00 AM Treasury Buyback Announcement
02:00 PM Treasury Buyback Results
03:00 PM Farm Prices
04:30 PM Fed Balance Sheet

Todays largest decreases in stock option open interest $SMCI $SOFI $COIN $PENN $KMI $SNAP $CVNA $ALAB $WULF

TDOC
Teladoc price target raised to $11 from $10 at Cantor Fitzgerald
Cantor Fitzgerald raised the firm's price target on Teladoc to $11 from $10 and keeps an Overweight rating on the shares. The firm expects the stock will see some relief following the soft 2025 guidance, saying in a research note that the overhang on the stock was largely due to the lack of investor confidence and management commentary in the direction of both the Integrated Care and BetterHelp segments. Cantor says the 2025 guidance is encouraging to weak sentiment.

gm bobber!!

DASH
DoorDash price target raised to $172 from $168 at BofA
BofA analyst Michael McGovern raised the firm's price target on DoorDash to $172 from $168 and keeps a Buy rating on the shares following what the firm calls a "solid quarter with top-line beat, but less margin upside." For 2025, the firm now estimates GOV, revenue and EBITDA of $91.7B, $12.5B and $2.45B, versus prior forecasts of $90.7B, $12.36B and $2.36B, respectively.

Market Action: Treasury rates jumped after strong ADP. Yields have subsequently backed off slightly in the aftermath of the GDP report that was good news for the economy with solid growth and decelerating price pressurs. Concurrently, there were no surprises in the refunding announcement with coupon supply to be left unchanged for the foreseeable future. The 2-year yield is up 4.3 bps to 4.139% after initially spiking to 4.149%. The wi 10-year is fractionally richer at 4.245% after hitting 4.265%. And the wi 30-year is -2 bps lower at 4.473% from the session peak of 4.495%. Wall Street futures are marginally in the red in spit of the solid data and Google beat, but the indexes are off their overnight lows. Google surged after its earnings beat, and many of the Mag 7 are higher currently, but AMD is lower after its earnings miss. Eli Lilly and Caterpillar are also slumping. There is still a lot of event risk ahead keeping investors cautious. The DXY has rallied to 104.380 from the earlier low of 103.982.

MCD
McDonald's price target lowered to $342 from $350 at Truist
Truist lowered the firm's price target on McDonald's to $342 from $350 but keeps a Buy rating on the shares after its Q3 results. The company's accelerating U.S. comps in Q3 and October, before the e. coli outbreak, gives the firm confidence that its global focus on value, menu innovation, and marketing will drive market share gains and improved comps throughout FY25, the analyst tells investors in a research note, adding that the firm expects the sales drag from the e. coli outbreak in the U.S. to be short-lived with a return to positive comps in the coming weeks.

The European Union has raised tariffs on China-made electric vehicles to as high as 45.3% starting Wednesday, after a detailed anti-subsidy investigation that has been criticized by Beijing as well as the broader automaking industry. The tariffs will likely intensify the trade war between the EU and China, although negotiations are expected to continue to reach an amicable solution.

Dig deeper: In addition to the EU's standard 10% car import duty, EVs made in China will be subject to the following tariff rates: Tesla (TSLA) 7.8%; BYD (OTCPK:BYDDF) 17%; Geely (OTCPK:GELYF) 18.8%; cooperating companies including XPeng (XPEV) and NIO (NIO) 20.7%; state-run SAIC and all other firms 35.3%. The tariffs went into effect a day after they were published in the EU's Official Journal.

Bigger picture: The additional tariffs were implemented to protect EU automakers from "unfair" competition as Chinese EV makers benefit from state subsidies, allowing them to flood the European market with cheaper cars. It also said China's spare EV production capacity significantly exceeds demand in China, and the Chinese market is nearly three times the size of the EU market.

China's response: "China does not agree with or accept the ruling and has filed a lawsuit under the WTO dispute settlement mechanism," a spokesperson for its commerce ministry said. "We also noticed that the EU side indicated it would continue to negotiate with China on price commitments," signaling more consultations to "avoid escalation of trade frictions." China is widely seen to have retaliated by imposing anti-dumping measures on EU brandy imports and investigating EU imports of pork and dairy products.

What else is happening...

JOLTS data: Job openings drop more than expected in September.

Alphabet (GOOG, GOOGL) Q3 earnings: AI spending pays off.

Robotaxi stunner: Waymo crosses 150,000 paid trips a week.

AMD (AMD) Q3 earnings: Here's why the stock declined.

OpenAI partners with Broadcom, TSMC (TSM) for AI chips.

Elon Musk's xAI discussing raising funds at $40B valuation.

Musk acknowledges major economic risks of $2T budget cuts.

FDA cites key Novo (NVO) plant that makes Wegovy, Ozempic.

JPMorgan (JPM) sues customers over alleged viral check fraud.

NextEra (NEE) Florida unit seeks bill hike to cover hurricane costs.

Today's Markets

In Asia, Japan +1%. Hong Kong -1.6%. China -0.6%. India -0.5%.
In Europe, at midday, London -0.3%. Paris -1.4%. Frankfurt -0.9%.
Futures at 7:00, Dow -0.2%. S&P +0.1%. Nasdaq +0.2%. Crude +1.1% to $67.93. Gold +0.5% to $2,793.70. Bitcoin +1.7% to $72,340.
Ten-year Treasury Yield -3 bps to 4.23%.

Today's Economic Calendar

07:00 AM MBA Mortgage Applications
08:15 AM ADP Jobs Report
08:30 AM GDP Q3
08:30 AM Treasury Refunding Announcement
10:00 AM Pending Home Sales
10:30 AM EIA Petroleum Inventories
11:00 AM Treasury Buyback Announcement (Preliminary)
11:00 AM Survey of Business Uncertain

UP AFTER EARNINGS -

Alphabet (GOOGL) up 6%
Shake Shack (SHAK) up 8%
Brinker (EAT) up 6%
AbbVie (ABBV) up 1%
GE HealthCare (GEHC) up 1%
Biogen (BIIB) up 1%
Reddit (RDDT) up 22%
Snap (SNAP) up 7%


DOWN AFTER EARNINGS -

Wingstop (WING) down 13%
Eli Lilly (LLY) down 10%
Kraft Heinz (KHC) down 3%
Caterpillar (CAT) down 2%
Humana (HUM) down 1%
Qorvo (QRVO) down 21%
AMD (AMD) down 7%
Chipotle (CMG) down 2%

GOOGL $GOOG price target changes this morning:

to $215 from $200 at KeyBanc (overweight rating)
to $210 from $206 at BofA (buy rating)
to $192 from $187 at UBS (neutral rating)
to $185 from $180 at Bernstein (market perform rating)
to $220 from $200 at JMP Securities (outperform rating
to $216 from $212 at Citi (buy rating)
to $205 from $190 at Morgan Stanley (overweight rating
to $225 from $215 at Pivotal Research (buy rating)
to $220 from $200 at Barclays (overweight rating)
to $187 from $182 at Wells Fargo (equal wieght)
to $210 from $200 at Piper Sandler (overweight rating)
to $225 from $220 at Canaccord (buy rating)
[8:03 AM]
APP

Largest increases in stock option open interest today -- $MPW $COIN $HTZ $SOFI $RUN $GOOGL $BITF $INTC

GOOGL, GOOG
Alphabet price target raised to $185 from $180 at Bernstein
Bernstein analyst Mark Shmulik raised the firm's price target on Alphabet to $185 from $180 and keeps a Market Perform rating on the shares following quarterly results. The firm notes that the two big surprises this quarter were beats in Cloud, accelerating for the 4th quarter in a row to + 35% year-over-year, and SP&D growing 28% year-over-year led by YouTube subscriptions and Pixel device sales. None of that matters if the ad business is struggling, but fortunately that wasn't the case here, with search + YouTube + Network combining to grow above expectations, Bernstein adds.

CAT
Caterpillar reports Q3 adjusted EPS $5.17, consensus $5.34
Reports Q3 revenue $16.11B, consensus $16.08B. "I'd like to thank our global team for delivering strong adjusted operating profit margin and adjusted profit per share while generating robust ME&T free cash flow," said Chairman and CEO Jim Umpleby. "Our third-quarter results reflect the benefit of the diversity of our end markets."

BREAKING: Meta, $META, is developing an AI search engine to reduce reliance on Google, $GOOGL, and Bing, $MSFT.

REBN
Reborn Coffee to launch nationwide distribution of Cold Brew line
Reborn Coffee announced the upcoming nationwide distribution of its Cold Brew line, building on the momentum from its recent Miami Passion event with Hagerty Garage + Social during the Austin F1 Race. This launch features Miami Passion, a limited-edition Cold Brew blend, which combines Reborn's signature coffee with tropical Passion Fruit, capturing the vibrant spirit of Miami. Reborn's U.S. distribution strategy will target key markets where demand for premium Cold Brew is high, focusing on both retail locations and e-commerce platforms to ensure easy access for on-the-go consumers. In addition to Miami Passion, Reborn's RTD lineup will include two other popular Cold Brew fruit infused, each crafted to meet the tastes of health-conscious coffee drinkers who prefer low-acid, naturally caffeinated options.

reads



https://www.optionmillionaires.com/morning-reads-531/

Milei’s Revamp Offers CEOs a Glimmer of Optimism About Argentina

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Weird Things Are Happening in the Bond Market

Big Bank Chiefs Don’t See Two More Fed Cuts This Year

Fed’s Rate Cut Revives Small Business Optimism and Plans to Borrow

HSBC Takes $300 Million Hit From Legacy Capital Repayment

Wall Street Sees Lines Blur Between Private Credit and Bank Debt

Wall Street Regulator Pledges to Press on Amid Trump Threats, Political Pressure

JPMorgan CEO Jamie Dimon Says ‘It’s Time to Fight Back’ on Regulation

Trump’s Vast Tariffs Would Rock Global Businesses and Shake Alliances

An Ethical Minefield Awaits a Possible Second Trump Presidency

How Russia, China and Iran Are Interfering in the Presidential Election

Elon Musk Wants Big Families. He Bought a Secret Compound for His.

Why a Key Biden Effort to Boost Affordable Housing Has Faced Hurdles

How American Tax Breaks Brought a Chinese Solar Energy Giant to Ohio

Alphabet Needs More Than Strong Results to Tame Wall of Worries

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Big Tech earnings begin
This week is sure to be a roller-coaster ride for tech investors, with five Magnificent 7 stocks scheduled to report earnings this week. All five companies posting results this week will likely have a major impact on the broader stock market. Recall that the Magnificent 7 accounted for over half of the S&P 500's (SP500) gain last year.

Results on deck: Alphabet (GOOG, GOOGL) is the first Big Tech firm to announce its results, expected after market close today, amid regulatory scrutiny and intense competition. Meta (META) and Microsoft (MSFT) come next on Wednesday, followed by Amazon (AMZN) and Apple (AAPL) on Thursday. The remaining Magnificent 7 stocks are Tesla (TSLA), which kicked things off on a high note, and Nvidia (NVDA), slated to report next month.

Bigger picture: According to FactSet, four Magnificent 7 stocks are projected to be among the top 10 contributors to S&P 500 earnings growth for Q3 - Nvidia, Alphabet, Amazon and Meta. Interestingly, according to the latest Wall Street Breakfast survey, most respondents see Meta as the biggest beneficiary of earnings.

All about AI: Artificial intelligence and cloud computing will remain in the spotlight as Big Tech spends heavily in these areas. "The debate continues to rage about whether the costs will ultimately be justified, and investors increasingly will ask companies to 'show me the money' in coming quarters," said Schwab Center for Financial Research. Adding to the AI buzz, key chipmaker results will also be out this week - AMD (AMD) on Tuesday and Intel (INTC) on Thursday. (1 comment)

What else is happening...

WSB survey results: Meta (META) seen as biggest beneficiary of earnings.

U.S. finalizes rule curbing AI, chip technology investments in China.

Microsoft (MSFT) accuses Google (GOOG) of shadow campaigns.

Report: OpenAI generates bulk of revenue through subscriptions.

Boeing (BA) upsizes common stock offering, targets raising $21B.

JPMorgan's Dimon urges banks 'to fight back' against regulations.

Talc settlement: DOJ throws wrench into J&J (JNJ) bankruptcy plan.

U.S. said to be running low on RTX-made air missile interceptors.

Crude slammed in biggest one-day percentage drop since mid-2022.

A brief history of MicroStrategy's (MSTR) climb to reclaim 24-year high.

Today's Markets

In Asia, Japan +0.8%. Hong Kong +0.5%. China -1.1%. India +0.5%.
In Europe, at midday, London +0.1%. Paris +0.4%. Frankfurt +0.4%.
Futures at 7:00, Dow -0.1%. S&P flat. Nasdaq +0.1%. Crude +1.1% to $68.13. Gold +0.2% to $2,762.40. Bitcoin +3.8% to $71,131.
Ten-year Treasury Yield +1 bp to 4.30%.

Today's Economic Calendar

8:30 AM International Trade in Goods (Advance)
8:30 AM Retail Inventories (Advance)
8:30 AM Wholesale Inventories (Advance)
9:00 AM Case-Shiller Home Price Index
9:00 AM FHFA House Price Index
10:00 AM Consumer Confidence
10:00 AM Job Openings and Labor Turnover Survey
1:00 PM Results of $44B, 7-Year Note Auction

RBLX
Roblox trends should remain positive, says Roth MKM
Roth MKM analyst Eric Handler keeps a Neutral rating and $43 price target on Roblox ahead of its Q3 results. The company's near-term outlook looks good, though the firm is awaiting on some of its long-term visibility, the analyst tells investors in a research note. Roblox should be able to at least meet Q3 forecasts driven by continued strong increases in users along with further margin expansion, though a meaningful multiple expansion for the stock is likely tied to Roblox's ability to show progress/visibility in expanding its business model from one driver - virtual currency - to advertising and e-commerce, the firm added.

TTD
Trade Desk downgraded to Sell at New Street on difficult post-election comps
As previously reported, New Street downgraded Trade Desk (TTD) to Sell from Neutral with an unchanged price target of $86. Enthusiasm for the stock is "understandable" as smaller walled gardens continue giving Trade Desk more access to their premium inventory and the company's top competitor, Google's (GOOGL) DV 360, continues to give share according to all of the firm's recent industry conversations, says the analyst, who adds that "there's no change to our view that TTD is best-in-class for vision, strategy and execution." However, the challenge is 2025 as consensus implies about 30% core spend growth excluding political, up from 19% in 2024. The firm believes that core spend growth can accelerate in 2025, just not to the level that consensus implies, arguing that 2025 consensus is not properly reflecting the difficult comps that will follow the U.S. election.

TSLA
Tesla price target raised to $235 from $220 at Barclays
Barclays raised the firm's price target on Tesla to $235 from $220 and keeps an Equal Weight rating on the shares. The company reported a "robust" gross margin beat in Q3 and a "broad strokes" guide to Q4 volume of 525,000-plus units as well as 20%-30% year-over-year growth in 2025, the analyst tells investors in a research note. The firm says that while Tesla's autonomous vehicle pivot is "still a debate," its "improving fundamentals" are appreciated.

AAPL
Apple Intelligence software release to impact iPhone sales, says Citi
Citi believes a prolonged Apple Intelligence software release likely impacts typical iPhone sales seasonality this year. The firm models September and December quarter iPhone sales 2% and 3% below the Street, respectively, on delay of Apple Intelligence software features to spring of next year. That said, Citi still believes in a "strong" 9% year-over-year iPhone 17 unit driven upgrade cycle next year once Apple Intelligence software is fully released. It maintains a Buy rating on the shares with a $255 price target.

MCD
McDonald's reports Q3 adjusted EPS $3.23, consensus $3.20
Reports Q3 revenue $6.87B, consensus $6.82B. Q3 global comparable sales decreased 1.5%. "We will stay laser-focused on providing an unparalleled experience with simple, everyday value and affordability that our consumers can count on as they continue to be mindful about their spending," said Chairman and CEO Chris Kempczinski. "McDonald's will continue to follow our Accelerating the Arches playbook to drive long-term growth globally and win in this environment."

PayPal raises FY24 adjusted EPS view to high teens growth from low to mid teens
Raises FY24 GAAP EPS view to approximately $3.92-$3.96 from approximately $3.88-$3.98. Raises FY24 transaction margin dollar view to mid single digit growth from low to mid single digit growth. Now sees non-GAAP non-transaction operating expenses low single digit growth vs. previous view of slight increase. Sees FY24 free cash flow approximately $6B and share repurchase $6B. Comments taken from Q3 earnings conference call presentation slides.